Inside the outdoor industry

Compass issues new $100m offering

Four million new shares becoming available

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Compass Diversified Holdings has issued a $100 million public offering of 4,000,000 of its 7.875% Series B Fixed-to-Floating Rate Cumulative Preferred Shares with a liquidation preference of $25 per share.

The Company has granted the underwriters a 30-day over-allotment option to purchase up to an additional 600,000 Series B Preferred Shares. CODI intends to use the net proceeds from the offering to repay a portion of the outstanding balance of its revolving credit facility and for general corporate purposes. The closing is expected to occur on or about 13th March 2018, subject to customary closing conditions.

Distributions will be payable on the Series B Preferred Shares from and including the original issue date to, but excluding 30th April 2028 at a fixed rate equal to 7.875 per cent per annum of the stated liquidation preference of $25 per share and from and including 30th April 2028, at a floating rate equal to three-month LIBOR plus a spread of 4.985 per cent.

BofA Merrill Lynch, Morgan Stanley and UBS Investment Bank are acting as joint book-running managers on the offering with J.P. Morgan, Janney Montgomery Scott and William Blair acting as co-managers.

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